Proton begins construction of Malaysia’s first dedicated EV plant in Tanjong Malim

Proton has officially commenced construction of a new electric vehicle (EV) production plant at its Tanjong Malim facility. The groundbreaking ceremony, held today, was officiated by Perak Menteri Besar Datuk Seri Saarani Mohamad. With an investment of RM82 million, the new factory is expected to be completed by the end of 2025. In its first phase, likely to kick off in 2026, the facility will have an initial production capacity of 20,000 units per year.

The new plant will eventually manufacture multiple New Energy Vehicle (NEV) models for both domestic and export markets, with models based on Geely’s Global Modular Architecture (GMA) platform, and obviously starting with the Proton eMas 7 which was launched in December 2024 and is currently imported as a completely built-up (CBU) unit from China. However, with the new factory, Proton aims to transition to local assembly.

This facility also marks Malaysia’s first dedicated EV plant. While EV production in the country has previously been integrated with existing internal combustion engine (ICE) vehicle plants such as the case with Volvo and Mercedes-Benz, Proton’s new factory is meant only for EV production - at least for now.

The project aligns with Malaysia’s vision for an Automotive High Tech Valley (AHTV) and is a major milestone in consolidating all of Proton’s manufacturing operations around Tanjong Malim. More broadly, the new plant is expected to generate over 200 new jobs and create ripple effects in the local vendor community.

Proton has also revealed plans for a second phase, which will increase production capacity to 45,000 units per year, depending on market demand. According to Proton CEO Dr. Li Chunrong, the factory will initially focus on assembling the Proton eMas 7 and other future 'NEV' (or electrified) models.

“Once completed, this new factory will focus on producing the Proton eMas 7 as well as future NEV offerings as Proton expands its model range. Ultimately, we hope our success will establish a modern and capable automotive ecosystem to encourage more OEMs to consider Malaysia and AHTV as a regional base for EVs,” stated Dr. Li.

Proton has already confirmed the launch of another GMA-based EV model for some time in 2025, which could be the Proton eMas 5 or eMas 3. In China, the Galaxy E5, upon which the eMas 7 is based, has a plug-in hybrid sibling called the Galaxy Starship 7, making it more than feasible to suggest that Proton may explore adding a plug-in hybrid EV (PHEV) model to their portfolio in the future.

While Proton has confirmed plans to export the Malaysian-assembled eMas 7, large markets such as Australia and Indonesia will not be among its destinations with, concerning the latter, Geely announcing that an own-brand variant of the Galaxy E5 (or EX5) will be produced at a new facility in Bekasi, Indonesia starting in Q2 2025, undercutting the planned rollout for CKD eMas 7 production in Malaysia by quite some time. Instead, Proton’s confirmed export markets to include Mauritius, Nepal, Singapore, Trinidad and Tobago, and perhaps even Brunei.

Currently, the fully imported Proton eMas 7 is priced at RM105,800 for the Prime and RM119,800 for the better-equipped Premium variant. As CKD production begins for the 2026 model year, it remains to be seen whether local assembly will allow Proton to price the eMas 7 below RM100,000, which is currently the government-mandated floor price for imported electric vehicles.